Stock Market Chart Analysis

June 20, 2010

S&P 500 Fibonacci Levels

S&P 500 Ichimoku Cloud Resistance

S&P 500 is approaching the 50% Fib Retracement level.
The index is also approaching the ichimoku cloud in daily chart.
The traders who trade based on ichimoku consider a stock or an index as in bull market if it is trading above the cloud and in bear market if it is trading below the cloud.
Now if the cloud resistance is broken we can expect the momentum to increase on the upside.

5 DAY EMA AND SPINNING TOPS

NIFTY CHANNEL

NIFTY INVERTED HEAD AND SHOULDERS

Nifty as you can see in the first chart is trading above the 5 day high ema.
On friday it was a negative day but still managed to close above the 5 day high ema.
The candlestick pattern that formed on friday was a SPINNING TOP Since it has come at the top of the current move it is slightly negative.
Nifty is moving up in a channel and right now sitting at the top of the channel.
The INVERSE HEAD AND SHOULDERS break out target for nifty is well above 5400.
With the global markets support nifty should be moving ahead. The beginning of next week may see some pressure coming which will be supported by number like 5220 and 5180.

BASIC TECHNICAL ANALYSIS

BEARISH ENGULFING

RESISTANCE

Reliance communication should close above 194 for its current upward momentum to continue.
But near the resistance area the stock is already showing weakness.
A Bearish engulfing pattern has emerged and if the stock is not able to go pass 194 quickly then it will go down to 170 levels .

BROADENING BOTTOM

FALLING WEDGE

MOVING AVERAGE

Dow jones has formed multiple patterns in daily chart.
The broadening bottom pattern is shown in daily chart.
There is a falling wedge pattern which has given very good returns.
Then the moving average is not hinting anything. Having captured the 200 day moving average the price did not follow up. It has been a sideways market for the last 4 days as far as the closing prices are concerned.

SP 500 has formed three dojis in daily chart.
So this is the third day of indecision.
The hour chart shows a formation of a triangle. The hour chart has already broken the raising channel.
And this is the 4th day closing above 200 day moving average. But no significant movement of price away from the 200 day moving average. which might put some more doubts in to the minds of the bulls.
The 20 day moving average is starting to turn up

SP 500 is forming a head and shoulders pattern in 2 day chart.
The right shoulder should be in place when the index trades above 1135-1145.
The right shoulder in a head and shoulders pattern can be lower than the left shoulder also.
But any price action 1155-1160 should be taken as pattern invalid. Because There is important resistance at 1150. And if that is broken bulls may aim for 1200.

Ford motor has formed a triangle in hourly chart.
Before taking a position based on the hourly triangle take a look at the weekly chart.
Weekly trend line has broken.
Weekly MACD has given a sell.
One thing to notice is 11.30 which is a very strong support.
Daily close below 11.30 can bring good correction.